Voluntary Accident Insurance Plan

Introduction

Recent years have brought an unfortunate increase in serious accidents of all kinds. Our daily newspapers report tragedies, involving people at work, at play, in airline and snowmobile accidents, and even in those home activities we usually think of as safe.

Behind these accidents lie the personal and financial losses that fall heavily upon the families of the victims. While the personal loss is irreparable, it is possible by means of this insurance to minimize the economic consequences.

The following is a description of the plan, an addition to your financial planning portfolio.

Scope of Coverage

You are covered (your Spouse and Dependent Children are also covered if you have elected the Employee and Family Plan) for accidents which may occur anywhere at any time – on or off the job – while travelling or at home, including travel as a passenger in any scheduled aircraft. The insurance is in effect 24 hours a day, 7 days a week.

Benefits are payable regardless of any other benefits that you, your Spouse or Dependent Children may receive from any insurance company other than the Company, or any other organization.

Definitions

“Injury” means bodily injury caused by an accident occurring while coverage is in force, where such injury is the basis of claim and results directly and independently of all other causes in loss.

“Insured” means you, your insured Spouse or your insured Dependent Children.

“Principal Sum” means the amount you selected and which is stated on your most recently signed enrollment card on file with the Policyholder.

“Residence” means the primary dwelling of which the Insured is an occupant and the premises on which it is situated.

“The Company” means RBC Life Insurance Company.

“Male pronoun” wherever used includes the female.

Eligibility

You are eligible if you are a permanent active full-time and part-time employees. Your Spouse and your eligible Dependent Children may also be covered if you so choose. It is completely voluntary: you choose the amount of insurance that you would like to have and then your premium is collected by payroll deduction.

“Spouse” means a person under age 70 who is living with you and who is legally married to you; or if you are not married, is a person whom you have publicly represented as your spouse and with whom you have resided continuously for at least 12 months in a conjugal-like relationship, civil union, adult interdependent relationship, or any other formal union defined and recognized by law and who is:

• at least 18 years of age;
• competent to contract; and
• not related by blood closer than would legally bar marriage.
“Dependent Children” means your natural born children, legally adopted children, step-children, common-law children for whom you have legal custody or any other children dependent upon you for support and maintenance in a parent-child relationship as defined under the Income Tax Act, where such children are unmarried, one day old but under 21 years of age, or under 25 years of age and in attendance at an institution for higher learning on a full-time basis, or mentally or physically handicapped. Mentally or physically handicapped children remain eligible beyond the maximum age shown above, provided they are incapable of self-sustaining employment and remain totally dependent upon you for support and maintenance.
LOSS SCHEDULE
If within one year from the date of the accident, Injury results in any of the following specific losses, the Company pays the sum set opposite such loss for Injury resulting from an accident. Each sum is calculated based on the amount of Principal Sum.
Percentage of
Principal Sum
For Loss of:
Life……………………………………………………………………………………………………………………………………..100%
Sight of Both Eyes………………………………………………………………………………………………………………..100%
One Hand and Sight of One Eye…………………………………………………………………………………………….100%
One Foot and Sight of One Eye……………………………………………………………………………………………..100%
Speech and Hearing in Both Ears…………………………………………………………………………………………..100%
Sight of One Eye………………………………………………………………………………………………………………66 2/3%
Speech or Hearing in Both Ears………………………………………………………………………………………….66 2/3%
Hearing in One Ear…………………………………………………………………………………………………………………25%
All Toes of One Foot………………………………………………………………………………………………………………25%
For Loss of or Loss of Use of:
Both Hands or Both Feet……………………………………………………………………………………………………….100%
One Hand and One Foot……………………………………………………………………………………………………….100%
One Arm or One Leg………………………………………………………………………………………………………………75%
One Hand or One Foot………………………………………………………………………………………………………66 2/3%
Thumb and Index Finger of the Same Hand or
at Least Four Fingers of One Hand…………………………………………………………………………………….33 1/3%
For Paralysis of:
All four limbs (Quadriplegia)…………………………………………………………………………………………………..200%
Both lower limbs (Paraplegia)………………………………………………………………………………………………..200%
One arm and one leg on the same side
of the body (Hemiplegia)……………………………………………………………………………………………………….200%
Page 2 (8/1/2009)
“Loss” means, with regard to:
Hands and Feet: Actual severance through or above the wrist or ankle joint;
Arms and Legs: Actual severance through or above the elbow or knee joint;
Thumbs and Fingers: Actual severance through or above the metacarpophalangeal joints;
Toes: Actual severance through or above the metatarsophalangeal joints;
Eyes: Entire and irrecoverable loss of sight;
Speech and Hearing: Entire and irrecoverable loss of Speech and/or Hearing;
Paralysis: Total and irreversible Paralysis;
Loss of Use: Total and irrecoverable Loss of Use. The Loss of Use must be continuous for 12
months after which the benefit is payable, provided the nerve damage is
determined to be permanent.

Indemnity provided under this section for all losses the Insured sustains as a result of any one accident does not exceed the following:

1. With the exception of Quadriplegia, Paraplegia and Hemiplegia, the Principal Sum;
2. With respect to Quadriplegia, Paraplegia and Hemiplegia, two times the Principal Sum.

In no event is indemnity payable for all losses under this section to exceed, in the aggregate, two times the Principal Sum as the result of the same accident.

Repatriation

If an Injury causes the death of the Insured at least fifty (50) kilometres away from his principal city of Residence and results in the Company making a payment under the “Loss Schedule”, payment is made up to the amount stated in the “Schedule of Benefits” for the preparation and transportation of the Insured’s body to the city of permanent Residence.

Rehabilitation

When an Injury which does not cause your loss of life results in the Company making a payment under the “Loss Schedule”, an additional amount is paid for the reasonable and necessary expenses actually incurred up to the amount stated in the “Schedule of Benefits” for your special training, provided (1) you have to undergo training as the result of the Injury in order to be qualified to engage in an occupation in which you would not have engaged in except for such Injury and (2) expenses are incurred within three years from the date of the accident.

No payment is made for ordinary living, travelling or clothing expenses.

When an Injury which does not cause you or your insured Spouse’s loss of life results in the Company making a payment under the “Loss Schedule”, an additional amount is paid for the reasonable and necessary expenses actually incurred up to the amount stated in the “Schedule of Benefits” for your or your Spouse’s special training, provided (1) you have or your Spouse has to undergo training as the result of the Injury in order to be qualified to engage in an occupation in which you or your Spouse would not have engaged in except for such Injury and (2) expenses are incurred within three years from the date of the accident.

No payment is made for ordinary living, travelling or clothing expenses.

Spousal Retraining

If an Injury causes your death and results in the Company making a payment under the “Loss Schedule”, payment is made for the expenses actually incurred within three years following the date of the accident by your insured Spouse, for an approved and mutually agreed upon formal occupational program, specifically qualifying him to gain active employment in an occupation for which he would otherwise not have had sufficient qualifications. The maximum payable hereunder is the amount stated in the “Schedule of Benefits”.

In the event your insured Spouse does satisfy the requirements indicated above, such Spouse is deemed the beneficiary of the benefit.

Education

If an Injury causes your death and results in the Company making a payment under the “Loss Schedule”, an education benefit is paid for an eligible Dependent Child.

An insured Dependent Child is eligible for this benefit if at the time of the accident, he is enrolled as a full-time student in an Institution for Higher Learning beyond the 12th grade level, or he is in the 12th grade level and enrolls as a full-time student in an Institution for Higher Learning within 365 days following the date of the accident.

The annual payment is equal to the lesser of the percentage of your Principal Sum or the amount which are stated in the “Schedule of Benefits”.
The education benefit is paid each year for four consecutive years if the Dependent Child remains enrolled as a full-time student. The first payment is made when the benefit for loss of life becomes payable and the date the Company receives written proof that the Dependent Child is attending an Institution for Higher Learning as a full-time student.

Future payments are made for each following school year on the date the Company receives written proof that the Dependent Child is attending an Institution for Higher Learning as a full-time student. If, at the time of your death, there are Dependent Children not eligible for the education benefit, the Company pays an amount of $1,500 to your beneficiary. 1% of your Principal Sum to your beneficiary, subject to a minimum of $500 and a maximum of $2,500.

“Institution for Higher Learning” includes any university, CEGEP, trade school or college, as defined where you lived prior to your death.